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Earnest Deposits - Your Washington DC Area Realtor

By Damon J. Brockenberry

Real Estate Agent with Keller Williams Preferred Properties DC: SP98364962 MD: 601648

October 25, 2010 05:14 PM

There have been many questions, concerns, and issues pertaining to what is an earnest deposit, when is it applied, and who holds the deposit. These answers vary but there is one thing for sure. The earnest deposit shows good faith from the buyer. When an offer is made a copy of the earnest deposit is submitted with the offer. I always recommend buyers to put down a minimum of 1% of the purchase price which shows a strong offer on most houses. There is no legal set requirement in Washington, DC, Maryland, or Virginia. Click here for more.

Damon J. Brockenberry (Damon The Agent)

Washington DC Area Real Estate Services

Servicing Washington, DC, Maryland, & Virginia

cell: 240-694-6460 e-mail: sold@damontheagent.com

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Fred Griffin Florida Real Estate

Fred Griffin Real Estate - Tallahassee, FL

Licensed Florida Real Estate Broker

Great website and good Video, Damon. Maybe you should post it all here on this blog?

In Florida, no money is required to be held as a deposit. The "Promise to Perform" is considered sufficient legal consideration. (But good luck with that! - most Sellers will say, "Show me the money").

As a Broker, I do not want to hold that deposit money. Brokerage Escrow Accounts are highly regulated and frequently audited by the Florida Department of Business and Professional Regulation / Division of Real Estate. Failure to reconcile such an Account (coming up short or coming up over) can cost a Broker fines, reprimands, citations, suspension or even revocation of License.

Therefore I do not maintain an Escrow Account. It is my practice to have the Buyer wire the funds or make the check out to the Title Attorney or Title Insurer. This is also regulated by Law; the name, address, and telephone number of whoever "Holds the Money" has to be printed on the Real Estate Contract.

Oct 25, 2010 05:24 PM

Michael C. Price

Keller Williams - Ann Arbor, MI

Ann Arbor-Real Estate Strategist

I would prefer a promise to perform. The EMD creates a lot of red tape and rarely comes into play.

Oct 25, 2010 05:40 PM

Don Wixom

RE/MAX Executives Nampa, ID - Nampa, ID

"Looking out for your next move..."tm

Earnest money is even more important when a contract fails. It can cover some minor costs or just be received to either party as liquidated damages.

Oct 31, 2010 03:28 PM

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Damon J. Brockenberry

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